CMPS Earnings Prediction
The chart below shows how CMPS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMPS sees a +3.27% change in stock price 10 days leading up to the earnings, and a -3.37% change 10 days following the report. On the earnings day itself, the stock moves by -5.01%. This data can give you a slight idea of what to expect for the next quarter's release.
CMPS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
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Gross Margin
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Operating Margin
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Net Margin
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EPS
-0.56
-16.42%
-0.00%
No Data Available
CMPS Earnings Analysis
COMPASS Pathways Plc American Depository Shares Corporation (CMPS.O) Earnings Conference Call
Positive
Cash Reserves Stability: 1. Strong Cash Position: COMPASS Pathways reported cash and cash equivalents of $207 million as of September 30, 2024, ensuring operational funding at least into 2026.
R&D Tax Credit Impact: 2. Successful R&D Tax Credit: The company received a $13.6 million R&D tax credit in Q3 2024, which was not initially included in cash guidance, positively impacting cash flow.
Effective Patient Management: 3. High Washout Rate: The Phase III trials are achieving a greater than 90% successful washout rate from standard antidepressant medications, indicating effective patient management.
Strong Participant Retention: 4. Positive Patient Retention: The attrition rate in the trials is running below expectations, demonstrating strong participant retention and engagement in the study.
Commercialization Strategy: 5. Commercial Preparation: The company is actively preparing for the commercialization of COMP360, focusing on establishing billing codes and engaging with healthcare providers to ensure readiness for launch.
Negative
Trial Data Disclosure Delay: 1. Delayed Trial Data Disclosure: The anticipated disclosure of the COMP005 trial data has been pushed from early 2025 to the second quarter of 2025, indicating recruitment challenges and logistical complexities in the trial process.
Rising Cash Burn Rates: 2. Increased Cash Burn: Cash used in operations for Q3 2024 was $22.2 million, and excluding a tax credit, it would have been $35.8 million, with expectations for Q4 cash burn to rise to between $37 million and $43 million, totaling an annual cash burn of $114 million to $120 million.
Workforce Downsizing Strategy: 3. Workforce Reduction: The company announced a workforce reduction of approximately 30% as part of cost-cutting measures to preserve cash and focus on completing the Phase III COMP360 trials.
Cash Reserves Decline: 4. Declining Cash Reserves: Cash and cash equivalents decreased from $228.6 million at the end of Q2 2024 to $207 million at the end of Q3 2024, indicating a concerning trend in cash reserves amid rising operational costs.
Trial Timeline Extension: 5. Extended Timeline for COMP006: The timeline for disclosing data from the COMP006 trial has been extended to the second half of 2026, reflecting ongoing recruitment challenges and the complexity of the trial design.
CMPS FAQs
How does CMPS typically perform around its earnings report dates?
Is COMPASS Pathways plc (CMPS) Q3 2024 Earnings Call Summary positive or negative?
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CMPS Earning Call Sentiment
COMPASS Pathways plc (CMPS) Q3 2024 Earnings Call Transcript
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CMPS.O
5.48%Positive
The earnings call summary indicates operational and financial stability with a cash runway into 2026, but concerns about trial complexities and workforce reduction could offset positive sentiments. The Q&A section reveals uncertainties in trial recruitment and the decision-making process, which may weigh on investor confidence. Given these mixed signals, the sentiment is rated as neutral, with the stock price expected to remain stable in the short term.
